Vancouver has notified Olympic Village builder Millennium that its $561-million construction loan is now “due and payable” after the developer fell $8 million short of the $200-million scheduled payment due at the end of August.
The city has asked Millennium for a refreshed marketing plan for the village and details of how it plans to pay down the loan.
To date, 259 of 737 market units have sold, with the majority going prior to the Olympics.
Only 36 units have been sold since sales re-opened in mid-May. The developer’s next scheduled payment of $75 million is due the beginning of January.
Mayor Gregor Robertson blamed a soft housing market and the HST for the sluggish sales.
He said the village’s high-end units (almost 30 per cent of the unsold units are priced at more than $2 million) are particularly hard to move.
He said the city had taken over the lead on the 252 units of mixed-market rental and social housing and would select the operators and possibly even manage one of the buildings itself.